This is the Impact of the Middle East Conflict on the Printing Industry

The uncertain global geopolitical situation is also putting pressure on the printing industry in Indonesia. Chairman of the Indonesian Graphics Companies Association (PPGI), Mughira Nurhani, stated that the current global geopolitical situation is disrupting the stability of printed material distribution domestically. According to him, unresolved international conflicts are triggering surges in logistics costs and ship fuel prices, which ultimately burden paper prices at the consumer level. Although Indonesia can produce around 70% of its local paper needs, the industry still relies on imports of long-fiber pulp. This raw material is only produced by countries with four seasons, such as the United States, Canada, and Finland. Therefore, when global trade routes are disrupted by political situations, the supply of long fiber can also be hampered. However, this material is crucial for maintaining print quality. Mughira revealed that the price increase trend has been occurring since the beginning of the year and is difficult to normalize. “Paper prices have already risen; they’ve been rising since the start of the year because paper prices never go down,” he said. In addition to long-fiber import issues, the supply chain for recycled paper or brown paper is also facing serious constraints. Unlike countries like Japan, which have systematic auction and waste paper collection systems, according to him, Indonesia is still struggling with unregulated paper waste management regulations. As a result, recycled raw material stocks are often insufficient or misdirected. The phenomenon of using recycled document paper as food wrappers in markets is evidence of suboptimal governance, which also threatens consumer health due to chemical content in ink. This fragility in the supply chain also extends to the plastic-based printing sector. Since plastic pellets are derived from petroleum, their prices are highly volatile following global energy market dynamics impacted by geopolitical conflicts. This pressure is felt more heavily as the graphics industry is also adapting to the digitalization era, which encourages paper efficiency. Nevertheless, he is grateful that the packaging sector can still serve as a saviour. Mughira noted that almost all manufactured products and consumer goods still require packaging as protection, so demand in this segment remains stable. Furthermore, PPGI hopes for strategic steps to protect the domestic industry. Currently, out of the total national paper and pulp factory production capacity of 22 million tons per year, the majority, or about 70%, is allocated for the export market. With the school book printing season challenges starting at the end of April or beginning of May, the availability of raw materials for domestic needs must be prioritized. “Even under pressure, this industry survives because almost all manufactured products and consumer goods still require packaging,” said Mughira. They are also pushing for government policies requiring every product circulating in Indonesia to use locally printed packaging to strengthen the position of domestic businesses. Meanwhile, Daud Salim, the organizer of the Jogja Printing Expo (JPE) 2026, stated that in the current global economic challenges, industry players are expected to continue adapting through technological innovation while opening new collaboration opportunities in the graphics industry. “Modern printing technology innovations continue to develop, covering various media. Not only paper, but also printing on textiles, acrylic, metal, leather, and wood,” he said.